Guess Asia Q3 revenues surge 10%

US fashion brand Guess’ third quarter revenues decreased by almost 2% in US dollars while its revenues in Asia surge by 10% in US dollars and 28% in constant currency. 

According to Guess' Q3 Fiscal Year Report, The company recorded GAAP net earnings of US$21.8 million, a 26.9% decrease from US$29.9 million for the same prior-year quarter. Its total net revenue for the third quarter of fiscal 2023 decreased 2% to US$633.4 million from US$643.1 million in the same prior-year quarter. In constant currency, net revenue increased by 10%.

Guess America's retail revenues decreased 2% in US dollars and 1% in constant currency. Retail comp sales, including eCommerce, decreased 1% in US dollars and remained relatively flat in constant currency. Americas Wholesale revenues decreased 10% in US dollars and 9% in constant currency.

Guess Europe revenues decreased 2% in US dollars and increased 17% in constant currency, whereas retail comp sales, including eCommerce, decreased 8% in US dollars and increased 9% in constant currency.

However, Guess Asia revenues increased 10% in US dollars and 28% in constant currency, while retail comp sales, including eCcommerce, decreased 2% in US dollars and increased 13% in constant currency. For the nine months ended 29 October 2022, Guess Asia revenues increased 5% in US dollars and 17% in constant currency while retail comp sales decreased 5% in US dollars and increased 5% in constant currency.

Carlos Alberini, chief executive officer of Guess, commented, “We are pleased with our third quarter financial results, which exceeded our revenue and operating profit expectations in a challenging retail environment. Our revenues decreased by almost 2% in US dollars but grew 10% in constant currency, driven primarily by the strength of our business in Europe. For the period, we managed the business well and delivered an 8.6% operating margin and $55 million in operating profit. Lower performance-based compensation helped us partially offset the gross margin pressure we experienced as a result of the adverse currency impact associated with the strong US dollar and lower full price selling.”

For the fourth quarter of fiscal 2023, the company expect revenues to be down around 3.5% in US dollars versus the fourth quarter of fiscal 2022. For the full fiscal 2023, it expects revenues to be up around 2.0% in US dollars versus fiscal 2022.

“We are well positioned for our holiday period. We have a solid business plan and inventory levels are well aligned with our business trends. Our updated outlook for the fiscal year reflects these trends and the impact of further currency headwinds. We believe that the combination of our diversified business model, our global brands and our strong capital structure provides us with a significant competitive advantage in the current marketplace and remain confident in our long-term growth opportunities,” Alberini added.

Related articles:

Banksy accuses Guess of stealing work
GUESS and Superdry distributor picks Malaysia digital agency
GUESS and La Senza parent firm eyes new growth markets through Lazada tie-up